Concerns Over Monetary Policy And Other Links

I have a lot of links today, so I will do two sets.

Topic of the Day: Monetary Policy

Here is the first set with an emphasis on monetary policy and debt. The ECRI Index came out at a –8.3% annualized. That’s getting very close to where you have to call double dip. Am I worried? Yes. What can policy makers do?

I think what is clear is that fiscal stimulus is out. Remember, running up more deficits is not in the Republicans’ interest as we head into the mid-term elections in the U.S. The deficit hawks are going to win this one. So, now the Fed is going to get a lot of pressure to fire up the helicopters. I don’t really think QE is going to work but the Fed is going to feel the pressure to do something, anything.

• Don’t Expect Miracles from Monetary Policy – CBS MoneyWatch.com
• Economist’s View: A Response to Arnold Kling
• Mark Thoma’s Response, Arnold Kling | EconLog | Library of Economics and Liberty

Also see my related posts from yesterday and today. The first has links to more articles on this.

• A reduction in both fiscal and monetary stimulus
• Comstock: Liquidity Trap Means QE Will Fail As Private Sector Deleverages
• Would The U.S. Economy Have Double Dipped If The Fed Raised Rates in 2003?

The Usual Fare

• Debt collectors sock it to consumers – CNN Money
• George Soros – The Crisis & the Euro | The New York Review of Books
• Lindsay Lohan Quotes Cato Institute As She Gets 90 Day Jail Sentence | Cato @ Liberty
• Marginal Revolution: How do higher-IQ people choose?
• Marginal Revolution: Who’s preposterous?
• FT.com – Martin Wolf – Why we must halt the land cycle
• The future of Europe: Staring into the abyss | The Economist
• Jobs outlook for small businesses may be getting bleaker – latimes.com
• FT.com – Michael Spence – America needs a growth strategy
• Emerging market bull? ¡Viva España! | beyondbrics | FT.com
• China’s June trade figures may give Congress new ammunition | beyondbrics | FT.com
• Cleveland Cavaliers owner Dan Gilbert says LeBron James quit during playoffs – ESPN
• Henry Blodget’s Risky Bet on the Future of News – BusinessWeek
• Blacks’ Optimism About Their Standards of Living Tops Whites’ – Gallup
• Global Economy: Continuing Recovery But Clouds on the Horizon « iMFdirect – The IMF Blog
• Scott Sumner, The Unacknowledged Success of Neoliberalism | Library of Economics and Liberty
• CLSA’s Wood Increases China `Overweight’ on CSI 300 Decline, Trims India – Bloomberg
• Ungarn verbannt den Schweizer Franken – tagesanzeiger.ch

Also, take a look at a new blog from the IMF that I have discovered: iMFdirect – The IMF Blog.

Finally, the donation to Credit Writedowns by some wonderful people is much appreciated. I want to thank Gwen, Stephen, Loy, Liz and Steve for your gifts.

All the best.

Edward